We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.
My school is planning to close and I am being offered a teach-out to complete my program. What happens to my student loans?
Answer:
If you accept a teach-out to complete your program
at your school or another school, you will be responsible for repaying all of
your student loans.
When youre told
that your college will be shutting down, there can be a lot of uncertainty
about what comes next. Here is some helpful advice to help you navigate the
situation.
If your school
announced that it is closing, they may offer you a teach out, to
complete your program and receive your degree or certificate.
If you accept a
teach-out to complete your program at your school or another school, you will
be responsible for repaying your student loans.
If you decline a
teach-out offer and the school closes, you may not have to pay back
your federal student loans. If you have private student loans you
may still be responsible for your private student loans. Some
states may have programs that assist students with private student loans in the
event of a school closure. Some private student lenders may offer options to
assist certain borrowers in this situation.
If you later enroll in a similar
program at another school and receive credit for courses you already completed,
you may still need to pay back your loans.
The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.
